The Bible & Accounting Fraud
The Bible & Accounting Fraud Liberty University
Abstract
Accounting is an information and measurement system used by mainly all businesses and organizations to provide relevant, reliable and comparable information about its business activities, (Wild, & Shaw, & Chiappetta, 2011, p.272). Accounting Information Systems is a fundamental part of determining the success of an organization. An effective information system provides Internal controls which consist in policies and procedures implemented by a company to allow managers to monitor and control business activities. The Bible could be compared to an organization’s Internal Controls in the sense that it is the Holy and infallible Word of God for human kind and it was meant to “provide guidance, to teach, to rebuke, to discipline and training in righteousness” (2 Timothy 3:16, 17, NIV). As human beings with a fallen nature, we tend to fall into temptation and undermine the consequences that follow as a result. We have the free will to deliberate among different choices, and when these choices may offer personal gains and profit, our principles and values may be compromised if we are not rooted in the truth which is the Word of God. The Bible aims to establish a code of conduct and behavior for believers to avoid wrongdoings and engage in fraudulent activities.
Accounting fraud is defined as “the intentional misrepresentation or alteration of accounting records regarding sales, revenues and expenses or other factors for a profit motive” (businessdictionary.com, n.d). All companies are susceptible to fraud because their Accounting systems are managed by people, and as I mentioned above, we are fallen creatures with the susceptibility to fail. Examples of accounting fraud are: “merging short and long term debt into one amount to improve the perceived liquidity, failing to disclose risky investments, over recording sales revenue, under
Abstract
Accounting is an information and measurement system used by mainly all businesses and organizations to provide relevant, reliable and comparable information about its business activities, (Wild, & Shaw, & Chiappetta, 2011, p.272). Accounting Information Systems is a fundamental part of determining the success of an organization. An effective information system provides Internal controls which consist in policies and procedures implemented by a company to allow managers to monitor and control business activities. The Bible could be compared to an organization’s Internal Controls in the sense that it is the Holy and infallible Word of God for human kind and it was meant to “provide guidance, to teach, to rebuke, to discipline and training in righteousness” (2 Timothy 3:16, 17, NIV). As human beings with a fallen nature, we tend to fall into temptation and undermine the consequences that follow as a result. We have the free will to deliberate among different choices, and when these choices may offer personal gains and profit, our principles and values may be compromised if we are not rooted in the truth which is the Word of God. The Bible aims to establish a code of conduct and behavior for believers to avoid wrongdoings and engage in fraudulent activities.
Accounting fraud is defined as “the intentional misrepresentation or alteration of accounting records regarding sales, revenues and expenses or other factors for a profit motive” (businessdictionary.com, n.d). All companies are susceptible to fraud because their Accounting systems are managed by people, and as I mentioned above, we are fallen creatures with the susceptibility to fail. Examples of accounting fraud are: “merging short and long term debt into one amount to improve the perceived liquidity, failing to disclose risky investments, over recording sales revenue, under
References: John J. Wild, & Ken W. Shaw, & Barbara Chiappetta, (2011). Fundamental Accounting Principles, Principles of Accounting I. (p.272, 316). The McGraw Hill Learning Solutions for: Liberty University. Consuelo Herrera, CAMF, CFE (2013) Management Accounting, Web article, Retrieved on June 13, 2013 from: http://www.bellaonline.com/articles/art52952.asp Businessdictionary.com (n.d.) Web Dictionary, Retrieved on June 13, 2013 from: http://www.businessdictionary.com/definition/accounting-fraud.html Batescarter.com, (2010) “Accounting Fraud” Web article, Retrieved on June 13, 2013 from: http://www.batescarter.com/what-is-fraud